Mr. Nye introduced
the following bill; which was referred to the
Committee on Small
Business

A BILL

To amend the Small Business Act to prevent fraud in
transactions involving certain small business concerns.

1.

Short title

This Act may be cited as the
Small Business Procurement Integrity
Act of 2010.

2.

In
general

Section 16 of the
Small Business Act (15 U.S.C. 645) is amended as follows:

(1)

Small business
procurement fraud

In
subsection (d)(1)—

(A)

by inserting after a small
business concern owned and controlled by socially and economically
disadvantaged individuals, the following: a small
business concern owned and controlled by service-disabled
veterans,; and

(B)

by striking subparagraphs (A) through (D)
and inserting the following:

subcontract that is to be included as part
or all of a goal contained in a subcontracting plan required pursuant to
section 8(d); or

(C)

prime contract or subcontract to be awarded
as a result, or in furtherance, of any other provision of Federal law that
specifically references section 8(d) for a definition of program
eligibility;

shall be
subject to the penalties and remedies described in paragraph
(2).

.

(2)

False Claims Act
application

In subsection
(d)(2)—

(A)

in subparagraph
(C), by striking the and at the end;

(B)

in subparagraph
(D), by striking the period at the end and inserting ; and;
and

(C)

by adding at the
end the following:

(E)

be subject to penalties and remedies
imposed pursuant to sections 3729 through 3733 of title 31, United States Code.

.

(3)

Misrepresentation
of status

In subsection (e)—

(A)

by inserting after small
business concern owned and controlled by socially and economically
disadvantaged individuals, the following: a small
business concern owned and controlled by service-disabled
veterans,;

(B)

by inserting
grant, cooperative agreement, before prime
contract; and

(C)

by inserting a
comma after prime contract.

(4)

Use of
ineligible businesses; determination of losses

By adding at the
end the following:

(g)

Use of
ineligible businesses

(1)

In
general

Whoever knowingly
uses the services of another business to perform a greater percentage of work
under a contract than is permitted by such regulations issued by the
Administration, or attempts or conspires to do so, shall be subject to the
penalties and remedies described in subsection (d)(2).

(2)

Certification
deemed

By submitting a request for payment on a contract that is
awarded pursuant to section 8(a), 8(m), 15, 31, or 36, a contractor shall be
deemed to certify that it has complied with regulations issued by the
Administration governing the percentage of work that the contractor must
perform on such contract unless the contractor affirmatively states in writing
that it did not comply with the percentage of work requirement.

(h)

Determination of
losses

For purposes of
subsection (d)(2)(E), the loss to the Government and the damages sustained by
the Government, shall be deemed to be the amount of money that the Government
has paid to the party that received the prime contract, subcontract, grant, or
cooperative agreement enumerated in subsection (d), or the portion of the
Government’s payments under such a prime contract that were directed towards
such a subcontract. No credit for the fair market value of the property or
services provided to the Government shall be applied against such loss or
damages.

.

3.

Certification of
status

Section 3(q)(1) of the
Small Business Act (15 U.S.C. 632(q)(1)) is amended by inserting before the
period at the end the following: and who possesses a disability rating
letter issued by the Department of Veteran Affairs, establishing a service
connected rating between 0 and 100 percent, a disability determination from the
Department of Defense, or such other documentation as the Administrator shall
by rule require to establish proof of such disability.